Household electricity and gas prices declined across the European Union in the first half of 2026, but the trend may not last. Rising wholesale energy costs following the escalation of conflict in the Middle East could push household bills higher later this year and into 2027.

According to Eurostat, electricity prices varied more than threefold across EU countries. Ireland recorded the highest rates in euro terms, while Hungary had the lowest. Adjusting for purchasing power, however, placed Romania at the top of the ranking.

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Electricity Prices Vary Widely Across Europe

In the first half of 2026, household electricity prices, including taxes, ranged from €6.60 per 100 kWh in Turkey to €38.70 in Ireland across 38 European countries. Hungary had the lowest price in the EU, at €11.40, compared with the EU average of €28.30.

Germany (€36.20), Belgium (€35.80), Austria (€32.60), Italy (€31.40) and Sweden (€30.60) also recorded prices above the EU average. Spain (€25.10) and France (€24.90) were below it.

After adjusting for purchasing power standards (PPS), Romania recorded the highest electricity price, at 46.9 PPS per 100 kWh, followed by Poland (41.1) and Czechia (34.3). Iceland had the lowest adjusted price at 12.6, followed by Turkey (13.5), Malta (13.8) and Hungary (14.7).

Among the EU’s four largest economies, Italy had the highest adjusted price at 32.8, closely followed by Germany at 32.4. Spain stood at 28.0, near the EU average of 28.4, while France recorded 23.3.

Electricity Prices Decline, But National Trends Differ

EU electricity prices fell by an average of 2.2% compared with the second half of 2025. Finland recorded the largest increase, at 19.5%, followed by Turkey (11.2%), Poland and Lithuania (10.6% each), and Sweden (10.4%). Denmark and Luxembourg saw the sharpest declines, at 28.2% and 24.1%.

Prices fell in Germany by 6.5%, Spain by 6% and France by 3%, while Italy recorded a 5.9% increase. Year on year, the EU average declined by 1.6%. Romania had the largest increase, at 51.9%, followed by Turkey (35%), Ireland (19.8%) and Finland (18.4%). Prices declined in all four of the EU’s largest economies: France (-7%), Germany (-5.7%), Italy (-4.5%) and Spain (-3.9%).

National taxation, network charges, energy sources and supplier pricing help explain these differences. Professor Xiaoyi Mu, director of the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee, has highlighted the significant role of taxes and network costs in household bills.

For example, Denmark temporarily reduced its electricity tax by around €0.10 per kWh from January 1, 2026, while Finland introduced no comparable relief. Energy market intelligence firm VaasaETT, which helps compile the Household Energy Price Index, also identifies national energy mixes, tariff structures and the allocation of system costs as important factors.

Sweden Records Europe’s Highest Household Gas Prices

Household gas prices ranged from €1.60 per 100 kWh in Georgia to €22 in Sweden across 29 European countries. Hungary had the lowest price in the EU, at €3.30, compared with the EU average of €11.

The Netherlands recorded €16.20, followed by France (€13.50), Portugal (€12.60) and Austria (€12.40). Germany (€11.60) and Italy (€11.40) were also above the EU average, while Spain stood at €7.90.

After adjusting for purchasing power, North Macedonia had the highest gas price, at 20.8 PPS per 100 kWh, followed by Sweden (17.7) and Portugal (15.0). Hungary recorded the lowest figure at 4.3, ahead of Turkey (5.0), Luxembourg (6.6) and Croatia (6.8).

EU household gas prices fell by an average of 10.2% compared with the second half of 2025. Italy recorded the largest decline, at 23.2%, followed by Spain (17.6%) and Greece (16%). Turkey saw the largest increase, at 12.9%, while prices in Romania rose by 6.3%.

Year on year, EU gas prices declined by 3.5%. France was the only one of the four largest EU economies to record an increase, at 3.7%.

Higher Wholesale Costs Could Reach Households In 2027

The first-half figures capture only the initial months following the start of US and Israeli strikes on Iran in late February. Higher wholesale energy costs may take months to appear in household bills.

“There is always a lag between the benchmark wholesale natural gas price (TTF) and the prices paid by households,” Mu told Euronews Business. Depending on the structure of national retail markets, the delay can range from several months to more than a year.

Fixed-price contracts and advance energy purchases by suppliers can postpone the impact of wholesale market changes on household tariffs.

Mu also noted that falling wholesale gas prices had helped reduce household costs in the first half of 2026. Europe’s benchmark wholesale gas price declined by 19% in the second half of 2025 compared with the first half of that year, and was 14% lower than in the second half of 2024.

However, the subsequent increase linked to the Middle East conflict could reverse some of that relief. Mu warned that household bills may rise in the second half of 2026, with a greater impact in the first half of 2027.

Recent data already indicate upward pressure. Across European capitals tracked by the Household Energy Price Index, gas prices rose by an average of 12% between February 2 and September 1, while electricity prices increased by 4.2%. The October update recorded electricity price increases in 21 of 33 monitored capitals and gas price increases in 14 of the 27 capitals with available data.